Gear & Gadgets —

Gateway CEO not dismissing buyout rumors out of hand

With a weak brand and an uphill battle to regain lost marketshare, Gateway …

If you would like to buy the third-largest computer manufacturer in the United States, it might not be for sale. Gateway CEO Edward Coleman has declined to say whether or not the company would be open to acquisition during his reign, which started just a few weeks ago. In that time, he has already turned down one buyout offer and been handed a list of suggestions from a group of major shareholders.

Last month, eMachines founder Lap Shun Hui tried to buy Gateway's retail operations to complement his recent acquisition of Packard Bell. PB holds the number 3 position in Europe, just as Gateway does in America, and together they could have wielded a bit more pricing power against suppliers, but Gateway wanted none of that action.

It's unclear whether Coleman has shut the door to negotiations altogether, but the company isn't openly "exploring its options" like IMAX Theaters, Ford, or Univision have done lately. Gateway appears to have a branding problem, with management even admitting that its own employees don't really know what the company stands for. It's a far cry from the success stories of Apple and Dell, but it could also be a nice tabula rasa on which the new CEO can put his personal stamp.